Tuesday, February 28, 2012


Armstrong: FY11 results in line with consensus. Posts 4Q rev of $49.2m -12.5% yoy +12.2% qoq with net profit of $2.2m -67.3% +326.7% qoq boosted by other operating income at $7.1m offset by provisions for impairment at $6.2m. FY11 net profit approx $8.1m -67.3% yoy.

Other operating income was boosted by $1.8m of fair value gains in derivative contracts and insurance claims of $4.7m

4Q fall in revenue was attributed to the Thailand floods where 2 of 4 factories were shut down and co's customers' supply chain was disrupted resulting in reduction of sales. Thailand accounted for approx 26% of revenue. Automotive segment still registered growth of 9.9% from $17.5m to $19.2m due to higher demand from customers in China and is co's largest rev generator.

For FY11,both a stronger SGD and the Thai floods impacted revenue with all segment excluding Automotive posting declines. Higher raw material and labour costs also impacted net profit. In terms of geographical segments, China remains the top revenue contributor accounting for 32.1% of revenue, followed by Sg and Thailand which accounted for 27.3% and 24.0% respectively.

A dividend of 0.6c declared compared to previous yr's 2.0c. At FY11 EPS, co trades at steep valuations of 26.0x P/E but partly due to impact of Thai floods.

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